Halliburton Must Pay $200 Million For Defective Bolts
by: Andrew Schneider, September 28, 2011 6:09:04 pm
The claim relates to a contract former Halliburton subsidiary KBR Inc. had with Barracuda & Caratinga Leasing Company to develop oil fields nearly a hundred miles off the Brazilian coast. Barracuda & Caratinga later found that certain subsea bolts used in the project were defective. The arbitration panel recently ruled KBR is liable for the cost of replacing the bolts.
Halliburton says it’s pursuing all possible avenues to appeal the ruling.
When it spun off KBR in 2007, Halliburton agreed to pay all the costs and expenses, cash settlements or cash arbitration awards related to the replacement of the bolts. The company says it expects to record a third-quarter charge to discontinued operations as a result of the arbitration award.